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Israel Intercepts Ballistic Missiles From Iran; Trump And Netanyahu Hold A Call After Attack On Israel; CNN Reports On Energy Prices Over Next 100 Days; New York City Ramping Up Security Ahead Of Trump Attendance At NBA Finals. Aired 5-6p ET

Aired June 07, 2026 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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UNKNOWN (voice-over): This is "CNN Breaking News."

JESSICA DEAN, CNN ANCHOR AND FIELD CORRESPONDENT: You're in the "CNN Newsroom." Hi, everyone. I'm Jessica Dean here in New York. We do have breaking news tonight as two sources telling CNN Israel is vowing a powerful response to Iran after the Israeli military said it intercepted all Iranian ballistic missiles fired in a wave of attacks tonight. One of the sources saying at least 11 ballistic missiles had been intercepted.

Now, tonight's attack is the first between Iran and Israel since early April. Iran had threatened this attack if Israel struck Beirut, which is what Israel did earlier today after Hezbollah fired missiles that targeted northern Israel. Today marks the 100th day of the U.S. war with Iran. That ceasefire has been under strain with peace talks at a stalemate.

Let's bring in CNN Jerusalem correspondent Jeremy Diamond. Jeremy, walk us through the context around these strikes. We're also hearing from our contributor, Barak Ravid, who has spoken with President Trump, who says that President Trump told him he's going to call the prime minister, Benjamin Netanyahu, and tell him not to strike back. A lot of dynamics at play right now.

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Yes, that's right. And if that call from President Trump does go through to the Israeli prime minister, it will be interesting to see what Prime Minister Netanyahu chooses to do. But it does reflect the fact that these Iranian ballistic missile attacks against Israel do put this region, once again, on the brink of potential all out regional war. It comes hours after Israel carried out strikes in the Lebanese capital of Beirut targeting Iran's proxy there, Hezbollah.

Iranian officials had warned earlier this week that if Israel did that, then it would face Iranian direct retaliation. And that's what took place tonight as multiple barrages of Iranian ballistic missiles were fired towards cities in northern Israel. Air raid sirens going off across northern Israel, including the third largest city in Israel, that is the city of Haifa. We know that at least 11 missiles in total were fired by Iran, according to the Israeli military. We don't know how many of those were intercepted, but we have had no reports so far of any impacts around population centers or any civilian casualties at this stage.

The question now is, again, what happens? President Trump is vowing, according to Barak Ravid, to call the Israeli prime minister, to tell him not to retaliate against Iran, saying -- quote -- "Israel had its strike and Iran had its strike, we don't need another one."

But the Israeli prime minister is going to be under enormous domestic political pressure to follow through, to not allow an Iranian attack on Israeli soil to go un-responded to, and the Israeli prime minister is getting much -- you know, several months away now from election season. And so, he is under enormous domestic pressures here, but saying no to a U.S. president who has provided overwhelming military support for Israel in its war against Iran, this joint war that took place for, you know, two months before this April ceasefire, saying no to that would be extraordinary.

And so, we will see when that conversation actually takes place, what comes of it. But in the meantime, the Israeli military is directing civilians here in Israel to begin taking precautions. Schools have been canceled for tomorrow across the country. And this country is preparing to be on a wartime footing once again. Jessica?

DEAN: And Jeremy, to your point, there are -- there are so many questions around what this could ultimately mean, how this could disrupt what has been going on and kind of where we had settled in as the U.S. and Iran were trying to work through any sort of agreement. Is there any sense on your end right now about how that might be impactful to what the U.S. and Iran are talking about right now?

DIAMOND: Well, I mean, look, President Trump saying that he's going to tell Prime Minister Netanyahu not to carry out these strikes because he is concerned about what that will mean for the broader ceasefire between the United States and Iran for this delicate diplomacy that he has been undertaking for weeks now in which he insists once again, as he has said repeatedly over the last several weeks, that it is on the cusp of these two countries actually reaching a deal.

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And this is where the prime minister's views of that negotiation are also critical here because Prime Minister Netanyahu has been skeptical of this negotiation effort between the United States and Iran. He doesn't believe the Iranians are ready to make the kind of a deal that he would consider a good one. He has warned President Trump of that. He told President Trump a couple of weeks ago that it was a mistake to call off a planned U.S.-Israeli strike on Iran that would have seen this war renew.

And so, there's no question that Prime Minister Netanyahu would much prefer to go back to all-out war against Iran, but it is very difficult for him to do that without the support of the United States. It is very difficult for him to even go it alone with -- you know, without the United States, in particular, if President Trump is going to tell him not to do that. So, this is a very, very delicate moment for this region. The, you know, future of the U.S.-Iran ceasefire hang in the balance. The security of the region hanging in the balance. And tonight, there are millions of people both in Israel and Iran who are very concerned about what could come next. Jessica?

DEAN: Absolutely. All right, Jeremy Diamond for us live in Tel Aviv, thank you so much for your reporting. And just a few moments ago, CNN political and global affairs analyst, Barak Ravid, who we just mentioned, spoke to CNN about his phone call with President Trump. I just want to play you a clip of what he told us.

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BARAK RAVID, CNN POLITICAL AND GLOBAL AFFAIRS ANALYST, FORMER MIDDLE EAST CORRESPONDENT FOR AXIOS: Yes, I spoke to the president around 30 minutes ago about this latest escalation. And what the president told me is that he's going to call Israeli Prime Minister Benjamin Netanyahu and ask him to stand down and not retaliate to this barrage of ballistic missiles from Iran.

The president told me the Iranian strikes did not hurt anybody. Hopefully, Israel is not going to retaliate. If Bibi strikes them back, t's just going to keep on going like the last 47 years or the last 3,000 years, the president told me.

Trump added in our conversation, we are very close to a final deal with Iran. It's going to be a good deal. I don't want it to blow up because of what is happening now. Trump continued on saying, I'm going to call Bibi right now and tell him not to retaliate. Each of each of them had their fun. Israel had its strike and Iran had its strike. We don't need another one.

Actually, the president is talking right now to Israeli Prime Minister Benjamin Netanyahu. The call started just a few minutes ago. And I think this is going to be a very dramatic phone call because this escalation can stop or it can escalate even further. And I think that if President Trump indeed will tell Benjamin Netanyahu to stand down, Benjamin Netanyahu will be in a very big problem because on the one hand, domestically, he cannot stand down, he cannot retaliate to such an Iranian attack.

On the other hand, Israel needs the U.S. in order to strike Iran, especially if this is going to continue for a while. Israel needs air refueling. Israel needs operational coordination with U.S. forces. Israel needs help in search and rescue missions. Israel can go at it alone if it's a one off, if it's two strikes, but if it's something that is going on now for a while, Israel needs U.S. assistance. And if President Trump will not give Netanyahu a green light, it will be very hard for Israel to go forward.

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DEAN: And that was Barak Ravid speaking to CNN just a few moments ago. Here to discuss this further, former State Department Middle East negotiator, Aaron David Miller. He's now a senior fellow at the Carnegie Endowment for International Peace. Aaron, a couple of notes here before we get started. Sources are telling us that right now, that phone call is ongoing. So, as we speak, the president is on the phone with the prime minister of Israel, Benjamin Netanyahu. Let's start first with that. Was Iran counting on this for Trump to pick up the phone and try to deescalate and tell Benjamin Netanyahu to not further pursue this?

AARON DAVID MILLER, FORMER MIDDLE EAST NEGOTIATOR, U.S. DEPARTMENT OF STATE: I think -- Jessica, thanks for having me. I think you broke the code. I think that the Iranians have put both the Israelis and the U.S. in a box now. They're risk ready. They think they're winning. They don't think the ceasefire is serving their interests. They want deliverables up front, frozen assets unfrozen.

And if, in fact, the president says to Benjamin Netanyahu, do not respond, the Iranians will have added another chit to the pot, which will be the creation of a new norm.

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I mean, 10, 11 ballistic missiles, no casualties. If Netanyahu wants to accommodate Trump and, frankly, unless they agree on some proportional response and telegraph it to the Iranians to ensure that there's no Iranian counterstrike, I suspect that the prime minister will have no choice, however difficult it is for him, but to comply.

He's facing elections in September, October. Donald Trump can elect him, but he cannot afford a major breach with this president, both in terms of why he needs the United States for interceptors, refueling capacity, but he also needs Donald Trump to set up a campaign headquarters in Washington and basically run a reelect Benjamin Netanyahu campaign.

So, I'll take a flyer here, but I'm thinking unless they agree on some sort of token proportional response to this, that he probably will respect the president's wishes.

DEAN: So, let's talk more about another thing you just mentioned, which is these frozen assets. How much is this about those frozen assets for Iran right now as well?

MILLER: I mean, from the Iranian perspective, I think the ceasefire with the United States shows right that they can stay in the game, but it is really not serving Iranian interests. You got half a billion dollars a day they're losing as a consequence of the naval blockade. Ninety percent of their imports are seaborne. They're not able to sell their oil, certainly not on a daily basis. They do have inventories. They have floating oil, oil on the water that may last them another couple of months.

But I think they're hurting. And I think they want upfront frontloading of these deliverables. They want -- if they open the strait, they want to be paid for opening the strait. Sanctions relief is too complicated. Unfreezing assets in commercial banks, primarily in the Middle East, that's something that could be done very quickly. The problem for the president, of course, is just, as we know, the straits were open on February 27th, and he's going to be accused of paying this brutal authoritarian repressive regime billions of dollars for opening them up. It harkens back to the pallets of cash during the Obama administration, which the president pilloried the former president for.

DEAN: Yes. Let's zoom out for a second because I think as people are tuning in and they're getting this information, which is that now Iran and Israel, these missiles had been headed toward Israel after they struck Beirut and Iran had said, if you do that, were going to retaliate, and they were striking Beirut because northern Israel had been struck.

Zoom out for a minute and help people understand what this means at this moment where we are this far into these negotiations between Iran and the U.S. This has been a second front for the Israelis in this war in Lebanon. Obviously, Hezbollah, a proxy group of Iran. And then wider -- what it means for the Gulf region. We have other Gulf nations that have shut down some of their airspace at this point, Iraq and Syria. So, what does this all -- what does this all mean?

MILLER: I mean, it's either a moment because this will be contained and put back in the box, and we'll be having a different kind of conversation tomorrow or the next day. In April and October of 2024, the Iranians and the Israelis exchanged two sets of strikes against one another. It did not lead to regional war. The key Arab states helped intercept those missiles, so did American Patriots and THAAD interceptors.

Again, I think that Trump does not want to go back to the period, February 28th to April 7th. He sent a letter to the Congress in the context of war powers that the war is terminated. He wants to go forward with a deal.

The real danger here, this shows, this demonstrates what the risks are of not rapidly moving to close and reach an agreement on this memorandum of understanding. And right now, unless both sides, Iran and the U.S., are prepared for compromises that neither of them appears to be ready to make, even if we get through this one, I suspect you're going to have another round of some escalation. Either this is going toward escalation or toward a period in which diplomacy will take over and there'll be a fair amount of de-escalation because the two sides will reach some sort of an agreement. And, in a way, it's on two parallel but connected tracks which are now running.

The real question is which one is going to overtake the other, the negotiations for the possibility of a broader agreement or this tit for tat that's going to end up escalating ultimately in a major resurgence of conflict between Iran and the United States.

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We're not there yet. I think in the next 48 hours, it'll be clear if that's where we're going or not. DEAN: Right. And so, setting that table and knowing where we are at this moment and knowing that the next 48 hours are critical, it would seem to me, based on what you're saying, what our correspondents are saying, that this phone call with Benjamin Netanyahu and President Trump seems to be the next big piece of this that's going to determine what happens next.

MILLER: Yes. I mean, I think that's right. And again, they've maintained an uneasy -- uneasy partnership. Their relationship is clearly instrumental. Both are adept in the art of the con. They're both very skilled politicians. They've used one another effectively. Netanyahu clearly for political reasons in Israel where Trump is more popular than he is.

And Trump has brandished his pro-Israeli credentials while demonstrating when it matters to him as it did in October, right? After the Israelis struck Hamas's external leadership in Doha, he told the prime minister, you take my 20-point plan or -- quote -- Barak Ravid reported -- "I will walk, we will walk away from you."

So, Netanyahu, again, I think his political requirements will supersede his need right now to demonstrate his toughness. He cannot cross Trump if he wants to maintain his political salience. If he does, Netanyahu is very vulnerable and those vulnerabilities leading up to a September, most likely an October election, are going to increase exponentially. He can't afford a bad call, Jess.

DEAN: And that phone call happening as we speak. That's what sources are telling us. Aaron David Miller, so great to have you right now. Thank you so much. I appreciate it.

MILLER: Jess, thanks for having me. Appreciate it.

DEAN: More on the political implications of these fresh strikes in the Middle East. What it means for the fragile ceasefire agreement and how it could potentially impact November's midterms here in the U.S. Plus, we've seen oil and gas prices soaring over the past 100 days. What could they look like for the next 100. We'll break that down. You're in the "CNN Newsroom."

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DEAN: We do have breaking news. Sources say President Trump and Israeli Prime Minister Benjamin Netanyahu are on the phone right now. Israel has vowed to deliver a powerful response following a series of strikes from Iran just a short time ago. And we have reporting from our contributor, Barak Ravid, that the president is asking Benjamin Netanyahu to not retaliate.

Now, this is the 100th day of the start of this conflict of the U.S. and Israel striking Iran, with Iran warning there will be more crushing attacks if Israel does not stop striking Lebanon. Israel has said it has had to strike Lebanon because Hezbollah has been firing rockets into northern Israel.

Our political panel is joining us now, Democratic strategist Adrienne Elrod, Republican strategist David Urban. It is good to have both of you here when we are getting so much breaking news this afternoon. David, I'll start first with you. Look, the president was very clear with Barak Ravid that he does not want Israel taking this any further, that he's going to tell Benjamin Netanyahu to not retaliate after Iran fired those missiles at Israel just a short time ago. Where is the president in all of this? We're 100 days in. He's trying to get a deal done. And now, we have this erupting this afternoon.

DAVID URBAN, CNN SENIOR POLITICAL COMMENTATOR, FORMER TRUMP CAMPAIGN SENIOR ADVISER: Hello, Jess. It's obviously super difficult. This is like three-dimensional chess and you're negotiating with a party, the Iranian theocracy, that's leading that country that is not -- to say that they're not rational actors is to put it mildly.

This is a regime that has been chanting death to America, that has been doing great harm to our citizens and citizens around the world for the past 50 years. And so, trying to get them to negotiate in good faith a solution that's going to be acceptable to all parties, I think, is, you know, getting a camel through the eye of a needle here for President Trump.

I'm not quite sure that President Netanyahu is going to listen to him. He's got his country to defend. He's got to act in the best interest of his citizens. And so, it is -- you know, it's a really tough situation. I think President Trump's inclination is correct. We cannot allow Iran to have a nuclear weapon. But to get to where we need to be, it's going to have a lot -- more ugly than it is right now.

DEAN: Adrienne, domestically, what is the president will be looking at it as we head into these midterms? Because we have the gas prices which have obviously been affected by this war, that they would like to see come down. You have a broadly unpopular war based on poll after poll that we get with the American people. The president had promised no new wars.

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As David notes, his explanation has been that he doesn't want Iran to have a nuclear weapon, but at this point it's unclear if that's going to be the outcome of this agreement or not. Democrats certainly are trying to push the war powers -- war powers resolution again and again. Where are Democrats in all of this and where do you think the president is domestically?

ADRIENNE ELROD, DEMOCRATIC STRATEGIST: Well, I mean, I think that there's a lot of things to unpack here. I mean, number one, I think a lot of Americans don't understand, Jessica, why we are in this war in the first place. President Trump gave what he wanted to give, which was the longest state of the union address ever, 108 minutes. He spent three minutes of that address talking about Iran. And then, several days later, goes in and attacks. You know, U.S. doing the first -- making the first strike. So, a lot of people still don't really understand why we're in this war in the first place. What they do understand is every time they go to the gas pump to put gas in their car, gas prices are significantly higher than they were a week before, two weeks before, three weeks before, and certainly six or seven months ago. And Donald Trump knows that going into the midterms, if gas prices are high, his party is going to have a worse time in the midterms than they would traditionally.

Obviously, Jessica, any party that's currently in control, the opposite party tends to do better in the midterms. But when you layer on high gas prices, a war that many Americans, including a lot of independents, by the way, don't understand why we're in this war in the first place, layering on the affordability issue, you know, if you're the average ordinary voter and you're looking at the big picture here, you're saying, is this guy actually trying to fight for me or is he more concerned about our foreign adversaries and trying to figure out, you know, how to make things in his mind better on the foreign affairs front as opposed to the domestic front?

So, there's a lot to unpack. But the bottom line is just, even if this war were to end today, which is David very succinctly laid out, it's not going to. But even if it was, we're still going to have gas prices at very high rates by the time the election goes around. Donald Trump knows this. And I think that's one of the reasons why you're seeing him, you know, sound and appear more erratic as of late, because he can't end this war and he wants to.

DEAN: And David, I've had some Republicans that I've talked to and interviewed say, listen, yes, gas prices are high, but they're lower than when at certain points in the Biden administration, that during the Trump administration, they came down, which they did come down. That was a real selling point for this administration before this war started, is that gas was cheaper. And they make the case that there are good parts of this economy like this jobs report that we just saw very recently.

But at the same time, you run into kind of a dynamic we saw with the Biden administration, which is where the Biden administration kept saying the economy is sound, things are working, and people still didn't feel that. Whether or not the data was supporting it, people didn't seem to feel that. Do you think that's what's going on with voters right now?

URBAN: Yes. Listen. I think Adrianne is correct. You know, you have to -- I think the Trump administration, the president on down, need to do a better job of explaining what we're doing in the Middle East and why, right?

Nobody -- the three of us, I know, are old enough to remember what it felt like on September 12th, the day after the attacks on the World Trade Center. And this president, I think, should have laid out more forcefully that he's trying to make sure that we never have that feeling here in our guts, in our hearts and our souls in this country again, and we cannot allow the theocracy in Iran to possess a nuclear weapon because they may, at some point, one of their proxies or themselves may try to do something horrific on our soil.

So, decapitating the current regime, making sure they're neutered is a laudable goal, explaining it to the American people in great detail and explaining to them why prices are higher. I think this could have been done a lot more effectively by the administration.

And so, when people go to put their hand in their pocket to get money for gas and get a pizza for their kids, there's less money in there because, you know, gas prices basically end up being a tax on everything, right? You need gas in the truck that takes the groceries to the grocery store or picks up eggs from the farmer, even though egg prices are at all time low right now, interestingly.

But people do feel it. They feel it at home, Jess. You're right. You've got to -- they have to feel -- they have to be optimistic about the future of the country. And right now, with this war with no end in sight, with gas prices not as high as they were in the Biden administration, they're high but not as high, but, you know, they got down into the twos during the Trump administration and people were very excited about that. So, they're back up there. Summer months are coming. People are going to feel it when they travel.

So, I think the administration needs to do a good job of explaining what they're doing and trying to say, you know, stick with us, better things are on the way. If you vote for the Democrats, things are going to get much worse. I think they're going to need to make that case forcefully in these coming next few months.

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DEAN: And Adrienne, just lastly, to you, on that point that David was making, are the Democrats doing enough, do you think, politically to capitalize on this moment? And what would you like to see them doing in the next several months to get that message across to voters effectively?

ELROD: I mean, Jess, it is a great question. First of all, Democrats, let's keep in mind, have no power in Washington right now. We don't have the House. We don't have the Senate. Trump rules the White House. So, MAGA effectively rules Washington, D.C. at the federal level.

Now, obviously, we've got governors who are very effective messengers for the Democratic Party. They're going out there. They're talking about the affordability issue. They're trying to find solutions in their own states to try to mitigate some of these high gas prices and trying to make prices lower for groceries and everyday items that families need to live on.

I will say, Jess, at the federal level, I would like to see my fellow Democrats who are sitting in elected office be a little bit more forthcoming with what our plan would be when we take back the House and when we might possibly take back the Senate. It's pretty much a foregone conclusion. I think at this point that Democrats are going to win back control of the House of Representatives.

But what is that forward-looking plan? What is that plan that on day one, when Democrats get more power in Washington, what is the plan that we're going to implement that is going to lower prices for the American people, that is going to protect democracy, that is going to ensure that going into the 2020 elections, 2028 elections, that we have free and fair elections? What is that plan?

Because right now, I think that's what the American people are looking for. They know that Donald Trump has these issues. They know that he tends to self-implode from time to time, but they don't know, at the same time, what the Democrats are going to do for them. I think that's one of the reasons why our party brand is a little underwater right now. But I think as we get closer to the midterms, that those points will be more clear because people are looking for a change.

URBAN: Adrienne is a great spokesperson, but she -- Adrienne is a great spokesperson, but she has to admit that orange man bad, which has been the -- you know, that has been the theory of the case for Democrats, doesn't sell. And currently, there is no plan for the Democrats. That's why they're kind of in the wilderness. There is not one spokesman. There's not one.

The current spokesman for the party seems to be, you know, this rape fantasizing, Nazi creep in Maine, Graham Platner, that everybody is rallying around, who made -- the only way that Graham Platner may lose now or be disqualified by Democrats as if -- you know, somebody said he had a star David tattoo. Maybe Democrats went to vote for him at that point. But he's currently the kind of the leader of the party. Everyone has run in Maine. They rallied around Graham Platner.

ELROD: He is not the leader of the party, David.

URBAN: You know --

DEAN: I will let Adrienne to have the last word on this. Hang on. All right, Adrienne, you can answer to that because I do think there are a lot of questions about Graham Platner representing the Democratic Party in Maine. Do you think that that is the right person to be representing the Democratic Party there?

ELROD: Look, that's what we'll find out on Tuesday. The elections, the primary election is on Tuesday. We will see. We will let the Maine voters decide there. I actually think that Graham Platner has been an effective messenger in terms of getting some of the constituents that we will --

DEAN: Did we lose Adrianne? I think we lost her.

URBAN: I will finish it for her.

DEAN: All right. Well, David -- David Urban, Adrianne Elrod, we will leave it there. Technical difficulties. Thank you to both of you. Really appreciate it. Stay with CNN. Our breaking news coverage out of the Middle East continues as Iran fires a wave of ballistic missiles at Israel. We will have an update for you when we come back.

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DEAN: We do have breaking news. Sources tell CNN President Trump is speaking right now with Israeli Prime Minister Benjamin Netanyahu following Iranian strikes fired against Israel tonight. That call coming as Israel has vowed a powerful response against Tehran. Axios has reported the president is going to ask the prime minister not to strike back.

Let's bring in CNN's Oren Liebermann, who is live in Jerusalem for us. Oren, walk us through Israel's position at this moment in time.

OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF: Israel's position, and now we've seen this stated from the Israeli military, is quite clear at this point, that they have plans on the table to carry out strikes in Iran. Two Israeli sources told us earlier this evening after either the first or second barrage of incoming Iranian ballistic missiles that they would deliver a -- quote -- "powerful response" to those incoming missiles.

But it's not just up to Israel and it's not just up to Prime Minister Benjamin Netanyahu. As we've seen so many times before, President Donald Trump has a say here, and that say likely being discussed between Netanyahu and Trump on that call right now. It's difficult to see a scenario where Israel doesn't respond in some fashion.

The question is how -- quote -- "powerful" -- excuse me -- will that response be. Whether it'll strike regime targets, whether Israel will pick up where it left off in early April and continue going after energy infrastructure, that would likely have a massive domino effect with Iran then striking Gulf energy infrastructure with a result not only on U.S. gas prices but on the global economy or -- excuse me -- or is it something more symbolic?

We've seen that happen before as well. At the end of the 12-day war in June, when Trump ordered Israel to turn back its fighter jet, Israel carried out one final strike effectively on a symbolic target to say that they had responded to a final Iranian ballistic missile. All of those are essentially a spectrum of what could happen here. And then, of course, it's the timing. Israel has shown repeatedly that it can strike Iran within a matter of hours or does Trump force Israel to wait?

[17:40:05]

All of these are key questions now. Netanyahu has held a security consultation in the wake of the incoming Iranian ballistic missiles that we saw this evening. He's now on the phone with Trump or at least he was a short time ago. We'll try to get a better sense of that phone call and how long it lasted. But these discussions are critical for how everything plays out in what is a key moment here with Trump trying to push forward negotiations even as we see escalations not only in the Gulf between the U.S. and Iran, but also on Israel's northern border, between Israel and Iran's proxy, Hezbollah. DEAN: Certainly. So much hanging in the balance here. A very critical moment. Oren Liebermann in Jerusalem with the latest from Israel, thank you very much for that. And as we learn more about these new rounds of attacks, oil coming out of the Strait of Hormuz is at its lowest level in 37 years. Again, what does that mean back here in the U.S. and the prices you're paying at the pump. We'll talk more about that when we come back.

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DEAN: We are following breaking news out of the Middle East this afternoon. Two sources telling CNN Israel is vowing a -- quote -- "powerful response" to Iran after the Israeli military said it intercepted all Iranian ballistic missiles fired in a wave of attacks tonight.

We're going to bring in Bob McNally, a former White House energy adviser under President George W. Bush and the founder and president of Rapidan Energy. Bob, good to see you. Thanks for being here with us.

Obviously, when you and I talk, things are always very fluid and there are a lot of ifs and ands and maybes and if this happens. And now, here we are with another moment in time with a lot of unknowns and the dynamics very much in flux. What are you watching for as all of this is unfolding today?

BOB MCNALLY, FOUNDER AND PRESIDENT OF RAPIDAN ENERGY, OIL EXPERT: Hi, Jessica. you're right. You know, today's events, the attacks, we'll see what the response will be, very much cut against the optimistic mood in oil markets in recent weeks. Crude oil is down 22 percent from its highs. Gasoline prices in our country are down eight percent. Now, they're still up 40 percent since before the war.

But the market recently has taken a very optimistic view. This crisis would end soon. The MOU would be signed. Hormuz would start flowing again. A lot of optimism. Equity markets have pretty much forgotten about the conflict since early April and are making new highs. So, tonight's events will be a jolt and a reminder that this is not over and it still could trend worse.

DEAN: Yes. And so, what might this mean practically for people here in the U.S.? Do we maintain kind of where status quo, where we are right now, seeing kind of the prices that we see right now or what might possibly come next?

MCNALLY: Well, you know, most oil analysts, us included, we think that even if we were to have a peace agreement and a reopening of Hormuz, we've sort of baked in the cake some big inventory drops, further inventory drops, further tightening, especially for gasoline. And so, as we look to July and August, I wish I had better news, but there is very much a risk that we will see a re-escalation of prices. Prices could rise later.

So, you know, you want to see the war end. That would help. But right now, this is going on for over three months now. It is the biggest disruption. It was a big problem for Asia. They're the ones that lost that oil right away. But this is now rolling to our markets. We won't have shortages per se, but higher prices are, I think, going to be almost an inevitable result later this summer. That's even if things open up soon.

If we have military action, if we have a prolonged disruption even beyond the summer, again, most barrel counters like myself would not be predicting happy things for pump prices, diesel prices later this summer.

DEAN: All right, Bob McNally, it's always great to have you. Thank you so much.

MCNALLY: Thank you.

DEAN: And stay with CNN. We have more of our breaking news coverage right after this break.

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DEAN: We are following the very latest on this new wave of ballistic missiles by Iran being fired toward Israel. We have much more for you in just a few moments.

But first, tomorrow night, President Trump is planning on attending game three of the NBA Finals at Madison Square Garden. That means much tighter security here in New York City. Fans are being warned to be ready for security screenings like they get at TSA and to arrive up to two hours early.

CNN's Gloria Pazmino is live outside the garden here in New York. Gloria, tell us more about how tomorrow might look because we've seen fans being able to gather outside and will have watch parties. That's all coming to an end tomorrow.

GLORIA PAZMINO, CNN CORRESPONDENT: That's right, Jessica. And I would say that's going to be the most significant difference tomorrow. We are not going to be seeing the scenes we have been seeing during the past games of fans being able to gather right outside the garden.

If you are one of the very lucky people who has tickets to tomorrow's game, you're going to be the only people who can be in this area tomorrow, and it means you're going to have to go through multiple layers of security, as you said, airport-style security, to try and get into the garden.

The watch party that has been hosted outside of the garden has been canceled. That has left a lot of Knicks, fans, New Yorkers very disappointed. Here's what some of them told us about this presidential visit.

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LANCE THOMPSON, KNICKS FAN: Personally, I think it is kind of a shame. I really would like it, you know, because we've been waiting for this for like how long. And, you know, a lot of people can't afford to get into the game. I'm one of those people.

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So, I was actually looking forward to going to one of these watch parties.

MALLY WIGGERTON, KNICKS FAN: This is a monumental day in New York City, and you're going to cancel it. It's all right. We're going to find a way, OK? If you guys know real New Yorkers, we're going to find a way.

ROSS MEYERSON, KNICKS FAN: And, you know, like he could say he's a native New Yorker, but he doesn't live here and he's kind of pooped on us for a while and, you know. So, like I think this is our time, and he's distracting from our time.

JANAY SANDERS, KNICKS FAN: We don't need that negativity. We need nothing but positive vibes.

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PAZMINO: Now, the streets around MSG will also be frozen tomorrow. No traffic, no pedestrians will be allowed in this area. The barricades have already been set up.

And this is all a part of a major security and safety plan that we are seeing unfold, especially going into the World Cup. In just a few days, this area is going to be seeing a lot of major events, both the NBA Finals, but also the start of the World Cup, which is taking place in New Jersey and other cities across the country, as well as Mexico and Canada. So, a significant law enforcement and security plan in place, not just here in New York City, but across the country. Jessica?

DEAN: Certainly. All right, Gloria Pazmino there at Madison Square Garden, thank you so much. In the meantime, President Trump has spent this afternoon on the phone with Israeli Prime Minister Benjamin Netanyahu urging him not to retaliate against Iran after Iran fired missiles at Israel earlier today. We're going to have the very latest on our breaking news when come back.

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